The document discusses how the global economy has led to increasing interdependence between countries. As specialization increases, the economic conditions and policies of one country can affect others. The US economy relies on resources and markets around the world, so when other economies slow down or expand, they can negatively or positively impact the US economy. Businesses seek cheaper foreign resources and labor to cut costs and increase profits, which can affect jobs in the US. Consumers may also purchase cheaper foreign goods, impacting demand for US products and services.

1. EPF9 The student will demonstrate knowledge of the
global economy

2. Growing Economic
Interdependence
 Greater specialization leads to interdependence
between producers and consumers.
 As a result of growing international
interdependence, economic conditions and policies
in one nation increasingly affect economic
conditions and policies in other nations.

4. US dependence on others
 The economy of the United States depends on
resources and markets around the world for the
production and sale of goods and services.

5. Effects of Other Economies on US
 When other economies slow, they may buy less
from the United States, and this can slow the United
States economy.
 When other economies expand, they may buy
more from the United States, stimulating the United
States economy.

6. Cheaper Foreign Resources
 To be competitive and increase profits, businesses seek
to reduce costs of production.
 When natural or human resources are cheaper in
other countries, United States businesses use
foreign resources when they can, affecting the
United States labor market.
 This may involve moving production to other
countries (i.e., offshoring) or sending work via the
Internet to workers in other countries (i.e.,
outsourcing).

7. Cheaper Foreign Goods
 When foreign goods are cheaper or better, United
States consumers may buy them, affecting the
demand for United States goods and services and the
jobs of those who produce them.